CRA International (CRAI) came out with quarterly earnings of $2.22 per share, beating the Zacks Consensus Estimate of $1.93 per share. This compares to earnings of $1.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.03%. A quarter ago, it was expected that this consulting firm would post earnings of $1.59 per share when it actually produced earnings of $2.03, delivering a surprise of 27.67%.Over the last four quarters, th ...

Financial Data and Key Metrics Changes - Revenue increased by 5.9% year over year to $181.9 million, marking the highest quarterly revenue in the company's history [5] - Non-GAAP net income, earnings per diluted share, and EBITDA increased year over year by 11%, 13%, and 11% respectively, each setting a new quarterly record [6] - Consultant headcount decreased by 5% compared to the first quarter of fiscal 2024, while consulting utilization improved to 76% [7][18] Business Line Data and Key Metrics Changes - Four practices: energy, finance, intellectual property, and life sciences posted double-digit revenue growth, while the antitrust and competition economics practice achieved a new high for quarterly revenue [6] - Revenue from legal and regulatory services increased by approximately 5%, aligning with broader legal market trends [8] - Management consulting services revenue increased by 10% year over year, driven by strong performance in energy and life sciences practices [12] Market Data and Key Metrics Changes - Worldwide M&A activity reached $885 billion during the first quarter, representing a 15% increase compared to the previous year [8] - Total case filings and court judgments increased by 132% compared to the first quarter of fiscal 2024, indicating a robust legal market [8] Company Strategy and Development Direction - The company aims to optimize its service portfolio by reconfiguring teams in targeted areas, affecting approximately 15 individuals [14] - The focus remains on expanding geographic reach and enhancing service offerings, particularly in high-demand areas such as antitrust and life sciences [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to fiscal 2025, reaffirming full-year financial guidance of $715 million to $725 million in revenue [16] - The company remains cautious about uncertain global macroeconomic conditions that could impact business [17] Other Important Information - The company ended the quarter with $25.6 million in cash and $85 million in borrowings, resulting in net debt of $59.4 million [19] - The effective tax rate for the first quarter was 27.2% on a non-GAAP basis, slightly down from 28% in the previous year [18] Q&A Session Summary Question: April activity and guidance confidence - Management noted that activity levels improved throughout the quarter, with trends from March continuing into April, though it is too early to declare sustained momentum [22][24] Question: Life sciences pipeline and opportunities - The life sciences practice is experiencing success across geographic and business areas, with hopes for continued momentum into Q2 and throughout 2025 [25][26] Question: Headcount growth and retention - The company is focused on optimizing investments and expects headcount growth to align with revenue growth in the medium to long term, despite a recent 5% year-over-year decline [28][30] Question: External factors affecting business activity - Management indicated that various macroeconomic and geopolitical factors create uncertainty, impacting client decisions but noted a general growth across all practices [38][41] Question: Return to office trends - The company has not seen significant shifts in office participation, with employees averaging just over three days in the office per week, consistent with pre-COVID practices [45][46] Question: Restructuring details - Management refrained from providing specifics on the restructuring affecting 15 individuals, emphasizing that it does not reflect the overall health of the practices involved [52][53] Question: Antitrust demand trends - The antitrust and competition economics practice continues to see strong demand, driven by both merger-related activity and ongoing investigations [57] Question: Collaboration across practices - Collaboration across practices and geographies is common and is seen as an underreported strength of the company, enhancing service delivery to clients [60][61]

Exhibit 99.2 CHARLES RIVER ASSOCIATES (CRA) FIRST QUARTER FISCAL YEAR 2025 EARNINGS ANNOUNCEMENT PREPARED CFO REMARKS CRA is providing these prepared remarks by interim CFO Chad Holmes in combination with its press release. These remarks are offered to provide the investment community with additional information on CRA's financial results prior to the start of the conference call. As previously announced, the conference call will be held May 1, 2025 at 10:00 a.m. ET. These prepared remarks will not be read ...

Charles River Associates (CRAI) has performed extremely well over the past year and has the potential to sustain the momentum in the near term. Consequently, you should add the stock to your portfolio if you have not taken advantage of the share price appreciation yet.What Makes CRAI an Attractive Pick?An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of CRAI have surged 17% against the industry’s 13% decline.Solid Rank: CRAI ...

Core Insights - Charles River Associates (CRAI) shares have increased by 20.7%, outperforming the industry decline of 9.4% and the Zacks S&P 500 Composite rise of 10% [1] - CRAI reported strong fourth-quarter 2024 results with adjusted EPS of $2.03, exceeding the Zacks Consensus Estimate by 27.7% and showing a year-over-year increase of 24.5% [1] - Revenues reached $176.4 million, surpassing the consensus mark by 6.1% and rising more than 9.2% from the previous year [1] Business Performance - The growing demand for specialized advisory services in a complex global marketplace is beneficial for CRAI [2] - The company's focus on attracting top talent and innovation positions it for significant growth [2] - CRAI's expertise is expected to see rising demand as industries navigate technological advancements and regulatory complexities [3] Client Relationships and Operations - CRAI's strategy of strengthening client relationships across its primary business lines enhances customer retention and brand image [4] - The company delivers consistent value by streamlining internal operations to improve efficiency [4] Geographic Presence - CRAI's geographic reach in North America and Europe allows it to serve a diverse client base and cater to various industrial and regional demands [5] Dividend and Share Repurchase - The company has steadily increased its dividend payouts, from $9.6 million in 2022 to $12.3 million in 2024, with dividend per share growing from $1.24 in 2022 to $1.75 in 2024 [6] - Share repurchase activity has also been consistent, with $27.6 million in 2022, $31.4 million in 2023, and $33.3 million in 2024 [7] Challenges - The company faces higher talent costs due to a competitive market and is heavily dependent on foreign talent [8] - Advancements in automation and AI may reduce clients' reliance on consulting services [8] Liquidity Position - CRAI's liquidity is challenged by significant short-term debt of $60 million against cash reserves of only $24 million, resulting in a current ratio of 1.07, below the industry average of 1.19 [9][11]

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market over the next 30 days [2] Group 2 - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook based on earnings and sales projections [4] - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] - The VGM Score combines all three Style Scores to provide a comprehensive assessment of stocks [6] Group 3 - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the best chances of significant returns [10] - Stocks with lower ranks, even with high Style Scores, may still face downward price pressure due to negative earnings forecasts [11] Group 4 - CRA International (CRAI) is highlighted as a 2 (Buy) stock with a VGM Score of A, indicating strong potential for growth investors [12] - CRAI is projected to have a year-over-year earnings growth of 2% for the current fiscal year, with upward revisions in earnings estimates from analysts [13] - The Zacks Consensus Estimate for CRAI has increased by $0.23 to $7.75 per share, with an average earnings surprise of 25.9% [13]

Group 1: Investment Strategy - The Zacks Rank system focuses on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to find undervalued stocks [2] Group 2: Charles River Associates (CRAI) Overview - CRAI has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is among the best value stocks [4] - The stock has a P/E ratio of 22.85, compared to the industry average of 25.32, suggesting it is undervalued [4] - CRAI's Forward P/E has ranged from 21.59 to 28.96 over the past year, with a median of 25.08 [4] Group 3: Valuation Metrics - CRAI's PEG ratio is 1.43, lower than the industry average of 1.90, indicating favorable growth expectations [5] - The P/B ratio for CRAI is 5.68, compared to the industry average of 6.51, suggesting an attractive valuation [6] - CRAI's P/S ratio is 1.7, slightly below the industry average of 1.72, indicating competitive sales performance [7] - The P/CF ratio for CRAI is 16.60, lower than the industry average of 18.69, highlighting its strong cash flow outlook [8] Group 4: Investment Outlook - The combination of these metrics suggests that CRAI is likely undervalued, making it one of the strongest value stocks in the market [9]

Company Overview - CRA International, Inc. (CRAI) has experienced a stock gain of 36% over the past year, significantly outperforming the industry, which saw an 8% decline [1] - The company holds a Growth Score of A, indicating strong quality and sustainability in its growth, with an expected long-term earnings growth rate of 16% [1] Market Position and Growth Potential - CRAI operates as a small player in the consulting and research services sector, benefiting from a growing demand for specialized advisory services in a complex global marketplace [2] - The company's strong reputation for high-quality analytical and strategic consulting services positions it well for future growth [2] Talent and Innovation - CRAI's success is heavily reliant on its ability to attract and retain top talent, with 74% of its senior staff holding advanced degrees [4] - The company focuses on innovation and client-centered solutions, which is crucial as industries face rapid technological advancements and regulatory complexities [3] Financial Performance and Shareholder Returns - CRAI has consistently increased its dividend payouts, from $9.6 million in 2022 to $12.3 million in 2024, with dividend per share rising from $1.24 to $1.75 in the same period [5] - Share repurchase activity has also shown consistency, with $27.6 million repurchased in 2022, increasing to $33.3 million in 2024, reflecting the company's commitment to long-term value creation [6] Competitive Landscape - CRAI faces significant competition from larger firms like McKinsey & Company and Boston Consulting Group, which have more resources to compete on price and invest in technology [7] - The competitive talent market is increasing costs for consulting services, and advancements in automation and AI may reduce clients' dependence on consulting firms [8]

Core Insights - CRA International, Inc. (CRAI) reported strong fourth-quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate, yet the stock declined by 4.7% post-release [1] Financial Performance - Quarterly adjusted EPS was $2.03, surpassing the Zacks Consensus Estimate by 27.7% and increasing 24.5% year over year [2] - Revenues reached $176.4 million, beating the consensus mark by 6.1% and rising more than 9.2% from the previous year [2] - Non-GAAP EBITDA increased by 28.4% year over year to $24.4 million, with a non-GAAP EBITDA margin improvement of 210 basis points to 13.1% [3] Operational Metrics - The company achieved a utilization rate of 78%, while headcount decreased by 5.8% year over year [3] - Cash and cash equivalents at the end of the quarter were $26.7 million, up from $24.5 million in the prior quarter [4] - Operating activities generated $49.7 million in cash, with capital expenditures of $18.1 million [4] - Dividends paid out during the quarter amounted to $3.4 million [4] Future Guidance - For 2025, CRAI provided constant currency revenue guidance of $715 million to $735 million for the first quarter [5] - The company anticipates a non-GAAP EBITDA margin in the range of 12% to 13% [5]

Financial Data and Key Metrics Changes - Revenue for fiscal 2024 increased by 10.2% to $687.4 million, marking the seventh consecutive year of record annual revenue [7] - Net income, earnings per diluted share, and EBITDA each grew at rates of more than 20% year over year [8] - In Q4, revenue increased by 9.2% compared to Q4 fiscal 2023, resulting in the best quarterly revenue in the company's history [9] - Non-GAAP net income, earnings per diluted share, and EBITDA increased year over year by 21.2%, 24.5%, and 28.4% respectively [11] Business Line Data and Key Metrics Changes - Legal and regulatory services led growth with a 12% increase year over year for fiscal 2024 [7] - In Q4, seven of CRA's eleven practices in energy, finance, and intellectual property delivered double-digit revenue growth compared to Q4 fiscal 2023 [10] - Revenue from legal and regulatory services in Q4 increased approximately 7%, surpassing growth rates in the broader legal market [12] Market Data and Key Metrics Changes - North American operations contributed to revenue growth with a 7.8% increase, while international operations increased by 15.7% [9] - Total case filings in Q4 were up 1% year over year, and the number of total court judgments increased by 2% [12] Company Strategy and Development Direction - The company aims to continue broad-based profitable growth, with fiscal 2025 revenue expected in the range of $715 million to $735 million [23] - The company is focused on capital deployment, returning 49% of adjusted net cash flows from operations to shareholders [29] - CRA's Board of Directors authorized an expansion of the share repurchase program by $45 million, indicating confidence in long-term prospects [30] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding uncertain global macroeconomic, business, and political conditions affecting the business [24] - The company noted that M&A transactions in January were at a ten-year low, indicating a cautious market environment [46] - Management expects headcount growth to align with revenue growth, with a focus on optimizing staff levels [43] Other Important Information - The effective tax rate for Q4 fiscal 2024 on a non-GAAP basis was 30.9%, compared to 26.1% in Q4 fiscal 2023 [34] - The company ended Q4 with a consulting headcount of 946 and firm-wide utilization of 78%, up from 73% in the previous year [11] Q&A Session Summary Question: Thoughts on high utilization levels and headcount expectations for 2025 - Management indicated that high utilization is partly due to the growth of legal and regulatory services, which operate at higher utilization rates [42] Question: Impact of the new administration on business - Management stated it is too early to assess the impact, noting a significant drop in M&A activity in January [46] Question: Outlook for 2025 and contributions from various practices - Management expressed confidence in strong growth across the portfolio, particularly in life sciences and energy practices [58] Question: Margin guidance for fiscal 2025 - Management discussed maintaining profitability while managing costs and portfolio composition, with a non-GAAP EBITDA margin guidance of 12.0% to 13.0% [60] Question: Market for talent and ability to attract new hires - Management noted strong retention rates and a competitive market for talent, emphasizing the need to attract and retain skilled employees [72]